2. a. The market value of an asset is Check all that apply: the price at which the asset can be sold usually the same as the book value usually greater than the book value usually lower than the book value 3. Below is the balance sheet for Glucose Control Company as of Dec. 31, 2018. The company reported an annual net income of $85,000 for the following year, 2019, but did not change its assets or liabilities, unless otherwise noted. Assets Liabilities and Equity Cash 13,000 Accounts payable 18,000 Marketable securities 2.000 Notes payable 6,000 Accounts receivable 5,000 Current liabilities 24,000 Inventory 33.000 Long-term debt 95,000 Current assets 53,000 Total liabilities 119,000 Machines 34,000 Paid-in capital 20,000 Real estate 80,000 Retained earnings 28,000 Fixed assets 114,000 Equity 48,000 Total assets 167,000 Total liab. & equity 167,000 a. If the company distributed its entire net income as dividends, what would be the value of total equity on Dec. 31, 2019? b. If the company distributed half of its net income as dividends and used the rest to invest in new machines, what would be the value of total equity on Dec 31, 2019? c. If the company distributed half of its net income as dividends, used the rest to invest in new machines and sold all its marketable securities to pay back some long-term debt, what would be the value of total equity on Dec. 31, 20197 14,000 4. Below is the balance sheet for Stieger Corp. The current stock price is $52 and there are 4,500 shares outstanding. Assets Liabilities and Equity Cash Accounts payable 21,000 Marketable securities 2.000 Notes payable 6.000 Accounts receivable 7.000 Current liabilities 27,000 Inventory am 23.000 Long-term debt 95.000 Current assets 46,000 Total liabilities 122,000 Machines 34.000 Paid-in capital 20.000 Real estate 80.000 Retained earnings 18.000 Fixed assets 114,000 Equity 38.000 Total assets 160,000 Total liab. & equity 160,000 a. What was the market value of equity? 5. National Foods has made its first ever issuance of 40,000 shares with a par value of $2 at $15 each. Its book value of net equity is $320,000. a. What is the par value of its common stock? b. What is the additional paid-in-capital? c. What is retained earnings? 10. Emily Lim owns and runs an ice cream parlor in San Diego. Last year, she had sales of $520,000 and an average tax rate of 28%. She spent $52,000 on ingredients, $26,000 on utilities, and $93,600 to rent the premises. Emily has a few employees and paid them $104,000 in wages in total. She also paid herself a salary of $78,000 and spent $52,000 to pay for employee benefits. A few years ago, Emily borrowed money to buy the Ice making equipment. Last year, she paid $26,000 in interest on that loan. Depreciation for the equipment was $15,600. a. What was operating Income (EBIT) for the year? b. What was net income for the year? 11. a. Which activity decreases cash? Decreasing fixed assets Decreasing equity Increasing current liabilities Increasing long-term debt b. Which activity increases cash? Decreasing equity Decreasing long-term debt Increasing current liabilities Increasing fixed assets 12. Consider the following information taken from the income statement and balance sheet for Nature Valley Inc.: ($ million) 2018 2019 Revenue 346 367 Cost of goods sold 242 257 Depreciation 35 37 Net income 55 58 Cash 27 23 Accounts receivable 18 36 Inventory 14 18 Accounts payable 23 9 Net fixed assets 150 176 No fixed assets were sold and there was no cash flow from financing activities. a. How much cash did the company collect in 2019 in $ million)? b. How much cash did the company pay out in 2019 (in $ million)? c. What was capital expenditure in 2019 (in $ million)? d. What is the cash flow from operations in 2019 (in $ million)? 13. Below is the balance sheet for Northern Comfort Company for December 31 of 2018 and 2019. 2018 2019 2018 2019 Cash 950 1.000 Accounts payable 2,850 3,000 Accounts receivable 2,850 3,000 Current liabilities 2,850 3,000 Inventory 2,850 3,000 Long-term debt 5,700 6,000 Current assets 6,650 7,000 Total liabilities 8,550 9,000 Net fixed assets 12,350 13,000 Equity 10.450 11.000 Total assets 19,000 20,000 Total liab. & equity 19,000 20,000 The income statement for 2019 is also given: Amount Sales 48,000 Cost 26,400 Depreciation 4,800 EBIT 16,800 4,800 Taxes 3,000 Net income 9,000 The company paid $8,450 in dividends to shareholders at the end of the year. a. What was the cash flow from operating activities? b. What was the cash flow from long-term investing activities? c. What was the cash flow from financing activities? d. What was the net cash flow for the year? Interest